The Immigration Asylum and Nationality (2006) Act will take effect this year. Much of the old law will be swept away, and a new system is being gradually implemented, which introduces a multi-tiered approach to applicants.

Employers of migrant workers would do well to keep up-to-date with legislation, as penalties for employing workers illegally may include up to two years in prison, and in some cases fines of up to £10,000 per illegal worker.

Broadly speaking, Tier 1 applicants comprise highly skilled individuals who may be expected to add value to the UK’s productivity and growth. The new procedure is points based (PBS) requiring an applicant score of 75 eligibility points.

Tier 2 will replace the current work permit system. Tier 2 applicants are skilled workers with a job offer to fill gaps in the UK labour force, and as such are likely to be of the greatest importance to employers of labourers in industries such as manufacturing, construction and agriculture. Whilst Tier 1 applications are relatively simple, information required to support a Tier 2 applicant includes the submission of much more detailed information and a probable 50 eligibility points.

Processing time for all applications is likely to lengthen. Before an employer may recruit under all Tiers they will be required to apply for a licence. The licence application must be submitted electronically via a form available on the BIA (Border & Immigration Agency) website. Employers with a bad record may be “B - rated”, and will be closely monitored by BIA. A good employer on the other hand will be awarded an “A” rating. Licences last for 4 years.

An employer of a Tier 2 applicant must “sponsor” an application which will need to be made by the prospective employee to a British diplomatic post overseas. This will make the process a “one stop” approach, and the decision making will be undertaken abroad. Detailed guidance is yet to be published, however it is likely that there will be a qualifying threshold of 50 points and that there will be an English language requirement. Guidelines are not expected until June, and the system is likely to come into affect in Autumn 2008.

Tier 3 workers are restricted to limited numbers of low skilled workers needed to fill temporary labour shortages, while Tier 4 comprises students and Tier 5, youth mobility and temporary workers.

Higher sanctions have also been introduced, and employers who knowingly take on a worker without permission in the UK may be punished by an unlimited fine, and spend up to two years in prison. In other cases employers may be fined up to £10,000 for each illegal worker. The responsibility does not end there, and annually (I would suggest monthly) checks must be made to ensure that migrant workers are still entitled to remain in the UK. Copies of documents must be retained including photocopied passports and immigration status documentation. Names and dates of birth should be carefully checked against these documents. Obligations exist among others, to report a sponsored migrant who fails to turn up or is absent from work for more than 10 days. A record of the annual review must also be retained.

Generally speaking, EEA Nationals do not require a work permit. There are however exceptions for citizens of Romania and Bulgaria, who will not have an automatic right to work in the UK until at least the end of this year. Such persons are required to obtain “immigration permissions” in the meantime.

The new system is initially being piloted in India, and will roll out elsewhere this summer. The current work permit scheme will be abolished towards the end of this year, and employers will need to continue to work within the existing system until then.